Market Profile Analysis dated 20th December

Nifty Dec F: 12290 [ 12299/ 12255 ]

HVNs – 12024 / (12082) / 12112 / 12170 / 12190 / (12216) / (12270-285)

NF seemed like giving a drive at open as it scaled above previous day’s high in the opening minutes but there was no surge in volumes which is a must for a drive to sustain and as a result the auction made a narrow IB range of just 32 points after which there was the dreaded ‘C’ side extension to the downside as NF made a marginal new low of 12255 but volumes still remained low which meant there was no new supply coming in. NF then got back into the IB range of 12258 to 12290 and formed a balance for most part of the day before making a RE (Range Extension) to the upside in the ‘K’ period which confirmed a hat-trick of FAs as NF went on to make new highs at close tagging 12299 confirming a Neutral Extreme profile with a close around the dPOC of 12285 as it left the narrowest range of the series of just 44 points hinting at a range expansion coming in the next session(s).

  • The NF Open was an Open Auction (OA)
  • The day type was a slow Neutral Extreme Day – Up (NeuX)
  • Largest volume was traded at 12285 F
  • Vwap of the session was at 12277 with volumes of 59.9 L and range of 44 points as it made a High-Low of 12299-12255
  • NF confirmed a FA at 12255 on 20/12 and the 1 ATR objective comes to 12350.
  • NF confirmed a FA at 12207 on 19/12 and the 1 ATR objective comes to 12306.
  • The failed attempt in the ‘C’ period in NF on 18/12 can be considered to be a FA which was at 12177 and the auction tagged 1 ATR objective of 12275 on 19/12. The 2 ATR target from this FA is at 12373.
  • The Trend Day VWAP of 29/10 at 11848 will be important reference on the downside.
  • The settlement day Roll Over point (Dec) is 12153
  • The VWAP & POC of Nov Series is 11954 & 11910 respectively.
  • The VWAP & POC of Oct Series is 11461 & 11365 respectively.
  • The VWAP & POC of Sep Series is 11127 & 10960 respectively.

You can check the monthly charts & other swing levels for Nifty & NF here & for the weekly charts & analysis, please click here.

Daily Zones:

  • Value zones (volume profile) are at 12267-12285-12294

Hypos / Estimates for the next session:

a) NF needs to sustain above 12291 for a rise to 12310 & 12340
b) The auction has immediate support at 12270 below which it could test 12255-249 & 12230
c) Above 12340, NF can probe higher to 12362-368 / 12384 & 12407-413
d) Below 12230, auction could fall to 12216-207 / 12190 & 12170*
e) If 12413 is taken out, the auction go up to to 12446 & 12475
f) Break of 12170 can trigger a move lower to 12150 & 12135-130


BankNifty Dec F: 32378 [ 32440 / 32180]

HVNs – 31715 / 31855 / 31896 / 32040 / 32090 / 32200 / 32260 / 32340

BNF moved away from the 3-day Gaussian profile as it left a buying tail in the IB (Initial Balance) to make new highs for the week at 32366. The ‘C’ period gave the customary move against the trend as it made a dip into the buying tail but could only leave a PBL (Pull Back Low) of 32265 after which the auction remained inside the range of the ‘C’ for the next 6 periods leaving similar highs of 32350 in the F & G periods forming a ‘p’ shape profile for the day. BNF finally got out of the ‘C’ period in the ‘J’ period & made a RE to the upside in the ‘K’ period as it spiked higher to 32440 completing the 1 ATR objective from the FA of 32055 which was at 32431 but was met with a swift rejection there as it left a small tail at top from 32398 to 32440 before closing the day at 32378 leaving a 3-1-3 profile with a prominent POC at 32340 which would be the important reference in the coming session.

  • The BNF Open was an Open Test Drive – Up (OTD) on low volumes
  • The day type was a slow Normal Day (3-1-3 profile)
  • Largest volume was traded at 32340 F
  • Vwap of the session was at 32325 with volumes of 19.7 L and range of 260 points as it made a High-Low of 32440-32180
  • BNF confirmed a multi-day FA at 32055 on 18/12 and tagged the 1 ATR objective of 32431 on 20/12. The 2 ATR target comes to 32806
  • The Trend Day VWAP of 06/11 at 30587 will be important reference on the downside.
  • The settlement day Roll Over point (Dec) is 32160
  • The VWAP of Nov Series is 30699.
  • The VWAP & POC of Oct Series is 28784 & 28415 respectively.
  • The VWAP & POC of Sep Series is 28416 & 27160 respectively.

For the Monthly charts & other swing levels for BankNifty & BNF click here & for the weekly charts & analysis, please click here.

Daily Zones:

  • Value zones (volume profile) are at 32279-32340-32361

Hypos / Estimates for the next session:

a) BNF has immediate supply at 32410 above which it could rise to 32465 / 32510 & 32573-577
b) The auction has good support is at 32340-328 below which it could test 32260-248 & 32200
c) Above 32577, BNF can probe higher to 32628 / 32682 & 32725
d) Below 32200, lower levels of 32160-148 & 32090-040* could be tagged
e) If 32725 is taken out, BNF can give a fresh move up to 32784 / 32850 & 32905
f) Below 32040, we could see lower levels of 31980 & 31925-896

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